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Message: <blockquote data-quote="justkeepswimming" data-source="post: 157109" data-attributes="member: 25536">Nvidia’s having a tough time:The US cracking down on advanced AI chip exports to China is worrying for Nvidia, which has historically relied on China for a fifth of its sales.However, Nvidia is keen to continue supplying China within the limits of the new export rules. It plans to create export-compliant AI chips for the Chinese market, but the release has been delayed until the first quarter of 2024.Chinese firms are also keen to have Nvidia chips as domestic alternatives are not of the Nvidia standard yet. However, the trouble of getting access to these chips due to the increasingly strict export controls may force Chinese firms to source alternatives. This will especially be the case if the new export complaint chips are not of an appropriate standard.An alternative they may turn to is Huawei, a Chinese tech heavyweight, which Nvidia admits is a worthy opponent. Huawei has been racing to produce smart and fast AI chips. This situation has not been helped with China’s increasing focus and support for domestic brands. The Nvidia delay could give Huawei the time to attract consumers and/or improve their offering further.Nvidia is not just facing competition in China but also in the US market.AMD has announced it is rolling out a new rival to Nvidia’s AI chips with its own M1300 chip. Chief Executive, Lisa Su, has announced ambitious plans for this new chip, predicting it will reach $400 billion by 2027. It is also claimed to outperform Nvidia’s current offering.During an AMD event, Microsoft's chief technology officer and Meta’s AI senior director of engineering onstage to discuss how these companies were incorporating the M1300 into their AI workloads. Even OpenAI plans to use AMD’s chips for the latest version of its Triton software.Impact on AI chip industry + Impact on law firms:1 - The AI trend is going strongThe fierce demand for AI chips continues, and the big tech firms have already committed themselves to using AMD's chips for ongoing and future projects. Law firms can assist with creating the supply agreements. The manufacturers might be keen to include terms regarding exclusivity or volume requirements. Additionally, if Chinese chip buyers want to switch to a new supplier, law firms can advise them on how to exit their existing contract and enter a new one. 2 - Geopolitical tension impacting companies The US and China trade war continues to impact businesses on both sides. Law firms can help businesses remain compliant with the new restrictions. They can also help clients determine whether they are caught under the new restrictions, to begin with. 3 - Disputes There is also the potential for disputes to arise: between buyers and manufacturers but also disputes between governments and businesses. A few days ago, the US commerce secretary warned companies not to play around with US regulations.</blockquote>

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